Top Ten Policies Affecting the Development of China Construction Machinery

In 2009, when the world suffered a financial crisis, the Chinese government introduced a series of policies and regulations to drive the economy steadily rising. These policies and regulations objectively created the “absolutely superior” Chinese construction machinery in the world, which has a profound impact on the development of the industry.

VAT reform is beneficial to technological transformation of engineering machinery enterprises

On January 1, 2009, the new "Provisional Regulations on Value-added Tax of the People's Republic of China" was implemented. The "Regulations" did not change the tax rate, but allowed enterprises to deduct the value-added tax included in the purchase of equipment, which reduced the tax burden on enterprise equipment investment. In other words, the value-added tax included in the newly purchased equipment of the company can be deducted from the new value-added tax for the company this year, avoiding the double taxation of the purchase of the equipment of the enterprise. This will increase the strength of the construction machinery enterprises and update the processing equipment. It is beneficial to adjust the industrial structure and expand the product variety and even the product transformation. In addition, the decline in interest rates for RMB bank loans due to the economic crisis and the fall in steel prices and fuel prices have also facilitated the technological progress of enterprises.

Second mobile phone imports new regulations to improve the share of domestic excavators

On January 13, 2009, the National Electromechanical Products Import and Export Office promulgated the “Circular on the Transfer of Imported Application Materials for Old Excavators”, and the import of used excavators will be handled by the National Electromechanical Institute in accordance with the “Measures for the Administration of Imported Key Mechanical and Electronic Products”. To conduct unified management, at the same time require that the old excavator to be applied for import should meet the criteria of “Import Used Excavator Acceptance Specification”. This is to further strengthen the management of imported excavator product imports and safeguard consumer rights.

Improve the average import price of used excavators to reduce their market share in the Chinese market, control the flow of used excavators into the domestic market at the source, and provide a broader new machine market space for domestic excavator manufacturers. At the same time At the beginning of 2009, the country adopted a plan for the adjustment and revitalization of the equipment manufacturing industry, and proposed to rely on key projects in the areas of coal mines and metal ore mining, etc., to achieve targeted domestic production of key products, which also created more market space for domestic excavators.

Railway Construction Drives 10% Market Demand for Construction Machinery

The highlight of the 4 trillion yuan investment is infrastructure construction, of which the railway has a particularly obvious effect on the pulling of construction machinery. In 2009, the total investment in railway fixed assets in China reached 700.7 billion yuan, and the investment in railway infrastructure was completed in the same year was 600 billion yuan. Investment in civil engineering Calculated by 55% of the share, in 2009, China’s railway construction investment amounted to RMB 330 billion. Among them, the demolition cost is about RMB 50 billion; the cost of subgrade construction is about RMB 50 billion; the construction cost of bridges and culverts is about RMB 110 billion. The tunnel is about 110 billion yuan. In concrete machinery, 600 billion yuan of railway infrastructure investment will drive 120 million tons of cement demand. In terms of earthmoving machinery, the demand for excavators, bulldozers, graders, pavers will be compared. In terms of piling machinery, the demand for equipment such as rotary drilling rigs and pile drivers has been increased. In addition, the demand for tunnel construction equipment such as roadheaders is also large. Overall, these investments will directly drive our projects. The increase in demand for more than 10% of the machinery market has played a significant role in driving the construction machinery market in China.

Equipment manufacturing adjustment and rejuvenation plan for the industry to offer good

On February 4, 2009, the State Council reviewed and adopted the adjustment plan for the equipment manufacturing industry. On May 12, the General Office of the State Council issued a detailed implementation plan for the adjustment and revitalization of the equipment manufacturing industry. According to the outline of the “Planning”, the construction machinery manufacturing industry will be rejuvenated within three years. The plan will also be introduced. "Planning" proposes that key projects in high-speed railways, urban rail transit construction, coal mining and other fields should gradually realize domestic production of key products, and require the promotion of basic components, large-scale castings and forgings, and special raw materials and other ancillary products as soon as possible. Technical level. The "planning" is a good news for solving the technical bottlenecks of key components in the related fields of construction machinery and other equipment manufacturing. The key to the revitalization planning of the construction machinery is to enhance the original innovation capability of enterprises, strengthen the basic technology research, and develop Supporting key functional components to further extend the product chain and service chain.

The issue of the equipment manufacturing industry of the two National Committees has become the focus

At the “two sessions” held on March 3-5, 2009, equipment manufacturing industry became the focus. On March 5, Premier Wen Jiabao specifically proposed in the “Government Work Report” to implement independent research and development of major equipment, domestic support projects and government procurement. The system will focus on the development of major equipment, high-tech equipment and equipment required by the high-tech industry to improve the level of integrated innovation and localization of equipment manufacturing. It is understood that “firm confidence, strengthen and expand China’s equipment manufacturing industry” is to participate in this The representatives of the equipment manufacturing industry and the members of the two associations shared the common aspirations. The project issues for the construction machinery industry mainly include recommendations on the introduction of the implementation plan for the revitalization of the equipment manufacturing industry as soon as possible, how to strengthen independent innovation in response to the international financial crisis, and increase the training of innovative personnel for construction machinery. Support construction machinery enterprises to implement overseas mergers and acquisitions, establish emergency network for engineering rescue machinery and equipment, establish post-earthquake reconstruction funds and revise earthquake prevention and disaster reduction laws, etc. The setting of these issues and their effects will have a profound impact on the further prosperity of the construction machinery industry.

The tax rebate rate increased 6 times to make the export of construction machinery close to the full tax rebate.

In order to cope with the international financial crisis, from August 2008 to April 2009, the Central Government has raised the export tax rebate rate for 6 times, involving 12 construction and machinery products with tariff numbers, including concrete pumps, lifts, and unloading cranes. Parts of escalators, buckets, buckets, grapples and grabs, bulldozers or shovels for side-dug bulldozers, etc. This will help companies reduce export costs, increase profits, and expand exports. After April 1, 2009, construction machinery was large. The export tax rebate rate for some whole products has increased to 17%. With the addition of spare parts, the export tax rebate rate for the construction machinery industry has basically reached a higher level of tax rebates for high-end products.

New "Special Equipment Safety Supervision Regulations"

Expect to exclude earthmoving machinery

On January 14, 2009, the State Council passed the "Decision of the State Council on Amending the "Safety Supervision Regulations for Special Equipment", which began on May 1, 2009. The person in charge of the Quality Inspection Bureau explained that the new regulations have changed in the following four aspects. The first is to increase the penalties for violations of special equipment, and the second is to install special motor vehicles, mobile pressure vessels, and safety inspections of non-destructive testing of special equipment into the regulation adjustment scope; The regulations for the energy-saving management of high-energy-consuming special equipment are the fourth; the fourth is to further clarify the responsibility for the production of special equipment and the use of units.

It is understood that the "catalogue of special motor vehicles within the "field" (factory)" is currently under formulation. It can be seen from the "catalogue (draft)" that excavators, loaders, scrapers, pipelayers, graders and stable soils. Earth-moving machinery such as mixers did not reappear, and earth-moving machines such as excavators will no longer be included in the special equipment manufacturing license list. This will create greater convenience and development space for the development of construction machinery manufacturers.

Strengthen the supervision of construction project bidding and promote the industry norms

On May 26, 2009, the National Development and Reform Commission together with the Ministry of Industry and Information Technology, the Ministry of Supervision, the Ministry of Housing and Urban-Rural Development and other eight departments jointly issued the “Opinions on Implementing the Policy of Expanding Domestic Demand and Promoting Economic Growth, and Further Improving the Supervision on the Construction Project Bidding "Notice" has carried out a unified deployment of supervision and control of project construction bids. The opinion points out that it is necessary to promote the issuance of the "Implementation Regulations on Bidding and Tendering Law" as soon as possible, uniform the tendering and bidding rules, and enhance the operability of the law. Strict implementation of the "Tendering and Bidding Law" provisions, Resolutely correct the illegal setting of restrictive conditions to exclude potential bidders and restrict competition. In accordance with the requirements of the Interim Measures for the Announcement of Bidding and Bid Illegal Practices Record, we must establish an announcement platform for the publication of unsolicited bidding records as soon as possible. This is to manage and make good use of government investment. It is of great significance to standardize the bidding and bidding market order, ensure project project quality and fund safety, increase investment efficiency, and further promote the normativeness of the domestic market including the construction machinery industry.

New Regulations for Tort Liability Law Promote High Industry Requirements

On December 26th, 2009, the Tort Liability Law passed by the 11th National People's Congress Standing Committee passed a new regulation, “If buildings, structures or other facilities collapse and cause damage to others, the The construction unit shall bear the joint and several liability. "If the construction unit or the construction unit has compensation, if there are other responsible persons, it shall have the right to recover the compensation from other responsible persons." For other responsible persons, buildings, structures or other facilities collapse causing damage to others. The responsibility of other responsible persons is assumed. This means that in the future, if there are any “bean curd slag” projects that directly endanger people’s lives and property, such as “buildings,” and cause casualties and property losses, the developer’s Construction units and construction companies as construction units shall bear joint and several liability. The introduction of this provision, to a certain extent, also urges the construction machinery industry, which is closely related to the construction market, to further improve reliability and performance stability in the production process of products. In order to be more adaptable to the high product requirements during the construction process.

Self-directed benefit of construction machinery and equipment to benefit from import tax exemption

In 2009, the Ministry of Finance, the National Development and Reform Commission, the Ministry of Industry and Information Technology, the General Administration of Customs, the State Administration of Taxation, the National Energy Administration and other six ministries jointly issued the "Circular on Adjusting Import Tax Policies for Major Technical Equipment." From July 1, 2009 At the same time, the importation of key spare parts and raw materials that are necessary for domestic enterprises to produce major technical equipment and products that support the development of the country is exempted from import duties and import value-added tax. At the same time, the corresponding tax exemption for complete machines and complete sets of equipment is cancelled. Policy. Domestically-manufactured equipment can not fully meet the demand, and still needs to be imported. As a transitional measure, it is rigorously reviewed to gradually reduce the margin of preference and narrow the scope of tax exemption. It will continue to offer preferential import policies within a certain period of time.

The adjustment of the import tax policy is one of the supporting rules for the “Adjustment and Revitalization Plan of the Equipment Manufacturing Industry.” This policy is mainly aimed at equipment manufacturing companies purchasing key imported parts and components for the development of major technical equipment and exempting raw materials from tax.

Adjusting the import tax policy can effectively improve the core competitiveness and independent innovation capability of China's construction machinery enterprises, promote industrial restructuring and upgrading, promote the localization of major technical equipment, and accelerate the revitalization of the equipment manufacturing industry.